Factor Endowment, Structural Coherence, and Economic Growth

June 1, 2012

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Format: Chicago

Natasha X Che. Factor Endowment, Structural Coherence, and Economic Growth, (USA: International Monetary Fund, 2012) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper studies the linkage between structural coherence and economic growth. Structural coherence is defined as the degree that a country's industrial structure optimally reflects its factor endowment fundamentals. The paper found that at least for the overall capital, the shares of capital intensive industries were significantly bigger with higher initial capital endowment and faster capital accumulation. Moreover, there is a positive relationship between a country's aggregate output growth and the degree of structural coherence. Quantitatively, the structural coherence with respect to the overall capital explains about 30% of the growth differential among sample countries.

Subject: Capital productivity, Employment, Human capital, Information technology in revenue administration, Labor, Production, Revenue administration, Total factor productivity

Keywords: Aggregate output, Capital Accumulation, Capital endowment, Capital intensity, Capital productivity, Dependent variable, Economic Growth, Employment, Europe, Factor Endowment, Growth rate, Human capital, Information technology in revenue administration, Output share, Resource allocation, Share regression, Structural Change, Structural Coherence, Total factor productivity, WP

Publication Details

Pages:

42
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2012/165
Stock No:

WPIEA2012165
ISBN:

9781475505139
ISSN:

1018-5941

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